Pistor, K., (2014), “German Court decision: Legal authority and deep power implications”, VoxEU, 26 Φεβρουαρίου
Who wields supreme power over the ECB? This column analyses the recent ruling by the German Constitutional Court that the ECB cannot act as lender of last resort. Although seemingly couched by the referral of this decision to the European Court of Justice, this is a bid for power and the return to the pre-crisis paradigm of ‘ultra posse nemo obligatur’.
Can the European Central Bank legally act as lender of last resort to ensure the survival of the euro?
This question is of fundamental importance for the sustainability of the monetary union. Recently, the German Constitutional Court ruled that it cannot. In the court’s view the ECB has the power to conduct monetary policy, but not to support member states in financial distress even if necessary to ensure the survival of the common currency.
Σχετικές Αναρτήσεις
- Bibow, J., (2014), “On German Public Opinion And Illusional ECB Power”, Social Europe Journal, 24 Φεβρουαρίου.
- Sinn, H.-W., (2014), “Outright Monetary Infractions”, Project Syndicate, 10 Φεβρουαρίου.
- Fratzscher, M., (2014), “Germany’s Pyrrhic Victory”, Project Syndicate, 10 Φεβρουαρίου.